Whether you have internal lease/rentals to bill to a customer or want to track leases connected to a 3rd party lender, there are different ways to manage these within the database.
Jump to a specific section by clicking a link
Overview | Best Practice Steps | Service Lease Record | Service Lease Tab on Contract | Other Helpful Info | Related Alerts
Overview
Overview
Following the best practice described below will ensure that you are billing internal lease (sometimes referred to as rental) charges to your customers accurately and on time as well as tracking your 3rd party leases. Keeping records of your lease and rental portfolios within the database makes for easier reporting and the use of our alerts related to lease end dates, lease billing on contracts, etc.
Service Leases within the database are records containing details of your company's lease portfolio, internal and 3rd party. The Lease tab in Service Contracts is to be utilized only when you are billing internal lease charges to your customers directly.
* * *
Best Practice Steps
Best Practice Steps
Service Lease Record
Creating and Managing Service Leases
Creating new Service Lease records
In E-Automate, click on Service from the top toolbar. Then select Leases.
To create a new Lease record, click the New button in upper-left hand corner
A New Lease record will appear. Complete the Details and Equipment tab. Below indicates how each field should be completed. Note that you will need to create options such as the Lease Company and Code in order to pick from.
Details tab:
Lease Number = lender's lease agreement number or your internal lease number
Lease Company = lender's name or internal lending name
Customer = select the customer this lease belongs to
Code = Select lease code such as $ Out, FMV, Internal Rental, etc.
Start and Termination Dates = the commencement date of the lease and its term date
Financed Amount = The total amount financed to the customer
Billing Periods = term of the lease in months
Payment Amount = monthly payment the customer pays towards the lease
Interest Rate = Optional, Interest rate the lease was booked at
Equipment tab:
Click the Add button in lower left-hand corner to add equipment. Below indicates how each field should be completed on the Edit Lease Equipment box that pops up.
Equipment Number = select the equipment that is on this lease agreement
Financed Amount = this is optional, but it would be the dollar amount allocated to the device when you funded it with the lender that is a portion of the total financed amount
Payment Amount = the portion of the total monthly lease payment that goes towards this equipment only
Asset Number = this is optional, some leasing companies assign an asset number to the leased equipment, and you can add that here
Managing Existing Service Lease records
Leases that have ended and should no longer be active in the system:
In E-Automate, click on Service from the top toolbar. Then select Leases.
Use the QuickSearch dropdown menu to locate the lease that is to be marked inactive. Double click on the line item for the lease in the results to open it.
Inactivate the Lease Record by un-checking the Active box in the lower left-hand corner. Click OK to save.
Leases that have been partially bought out and need to be updated to reflect the proper payment and equipment:
In E-Automate, click on Service from the top toolbar. Then select Leases.
Use the QuickSearch dropdown menu to locate the lease that is to be adjusted. Double click on the line item for the lease in the results to open it.
On the Details tab, update the Payment Amount field to reflect the new total payment for the lease after partial buyouts
On the Equipment tab, highlight the equipment(s) that are no longer on the lease and click the Delete button to remove them.
Click OK on the Lease Record to save it
Service Lease Tab
Creating and Managing Service Contract Lease Tab
This process is for when you are billing the lease or rental payment directly to your customers from your company and a 3rd party lender is not involved in the lease billing.
In E-Automate, click on Service from the top toolbar. Then select Contracts.
To create a new Contract that will bill the lease charge to your customer, click the New button in upper-left hand corner
A new Service Contract box will appear. Complete the fields below to create the new contract.
Header Section
Contract Number = leave alone and this will auto-populate
Customer = select customer that is to be charged the lease
Contract type = select the type that fits for your company, this could be a monthly lease or rental contract type
Contract bill code = select the code that fits for your company, this depends on coverage of the equipment
Status = Active
Billing method = Installment
Renewable = is check-marked
Renewal Cycle = select the auto-renew terms from your lease agreement
Start and Expiration Date = select the dates in accordance with the lease agreement
Installment Base Billing Tab
Billing cycle = select the billing cycle that corresponds to the signed lease
Billing Period = this will auto-populate based on the start date selected
Use Equipment Base Rates = select this option if you know how much of the total lease payment allocates to each equipment on the lease
Use Contract Base Rate = select this option if you do not know how much of the total lease payment allocates to each equipment on the lease
Use Standard Distribution = select this option
Base Distribution Code = since we are assigning revenue general lender accounts on the Lease tab, you can leave this at whatever it populated at
Billing/Contact tab
Select correct bill to customer in the Bill To field if different from customer who holds the lease, otherwise it will populate to the customer in the Header of the Contract
Lease Mode = use the magnifying glass to change from None to Lease, this will cause the Lease tab to appear on the Service Contract
Allow all other fields to auto-populate on this tab
Lease tab
Number = allow to auto-populate
Code = Select lease code such as $ Out, FMV, Internal Rental, etc.
Use Equipment Lease Amounts = checkmark this box if you know how much of the total lease payment allocates to each equipment only
Financed Amount = The total amount financed to the customer
Billing Periods = will populate based on start and end date of contract
Payment Amount = this will gray out because you've selected the Use Equipment Lease Amounts option. If you did not select that, then enter the lease payment in this field
Interest Rate = optional, Interest rate the lease was booked at
GL Account = select the correct account for your company for this type of transaction
GL Department = select the correct department for your company for this type of transaction
Use individual tax codes = checkmark this box
Use Lease Info for All Equipment = checkmark this box
Combine the Lease Amount with the Base Amount on the Invoice = leave unchecked, unless you are billing a base amount on this contract and want them combined without breaking out the lease payment on the customer's invoice
Equipment/Item tab
Click the Add button in the lower left-hand corner to begin adding equipment that is on the lease
Follow the steps below for the Add Contract Equipment/Item box that appears
Equipment = select this field
Equipment Number = select equipment to add to the contract, you can add by entering the equipment ID number, serial number or using the magnifying glass and
Start Coverage Date and start Base Billing Date = leave blank
Bill Code = leave blank
Bill Code = leave blank
Override Taxable = leave unchecked
On Contract Lease / Payment Amount = enter the allocated lease payment amount for this equipment
Click OK in lower right-hand corner to add equipment
Repeat these steps until all equipment is added to the contract
Click OK in the lower right-hand corner of the Service Contract to save
* * *
Other Helpful Info
Other Helpful Info
* * *
Related Alerts
Related Alerts
ID714 - Active Lease Needs Attention (In Development)
ID787 - Lease Expiration Report Overview & Sample
ID799 - Service Call for a Lease End Machine Overview & Sample
ID64 - Preview of Lease Information for Admin to Ensure Accuracy
ID381 - On Hold with Leasing Company
ID885 - Report of New Lease Records Created in Last 24 Hours
ID65 - Leases Still Active and Expiring Within W Months (For Sales)
ID824 - Contract Termination Date Vs Lease Termination Date
ID523 - Lease Expiration Notification W Days Before Expiration
* * *
0 Comments